LONDON, March 20: World oil prices ducked under $100 per barrel on Thursday, diving from record heights struck earlier this week amid fears of a global slowdown in energy demand, traders said.

New York’s main oil contract, light sweet crude for delivery in May, fell $1.32 to $101.22 per barrel, after earlier sinking as low as $98.65. The April contract had expired Wednesday after plunging by $4.94.

Elsewhere on Thursday, London’s Brent North Sea crude for May fell 64 cents to $100.08 per barrel after touching a low of $98.

“Crude fell below $100 a barrel as fears of a US recession, its impact on the rest of the world, and on oil demand growth continue to dominate headlines,” said Sucden analyst Michael Davies on Thursday.

“Oil futures have fallen around 10 percent now since the $111.80 record high hit on Monday.”

Prices had scaled historic heights on Monday as they were energised by the weak dollar and as investors sought a safer refuge for their cash than volatile world stock markets.

New York crude hit a record $111.80 on the back of the plunging US dollar, which hit a lifetime low against the euro.

But prices closed sharply lower on Monday as traders feared that rising financial markets turmoil could reduce demand for oil in the future.

On Tuesday, crude surged by more than $3 after the US Federal Reserve slashed US interest rates, stoking expectations of strong energy demand in key consumer the United States.

On Thursday, traders continued to focus on the global credit squeeze amid concerns over the impact it might have on economic growth and oil demand, and largely overlooked headline US energy inventory data showing a smaller-than-expected rise in crude supplies.—AFP